SAN FRANCISCO (TheStreet) -- Embattled car rental company Hertz (HTZ) turned to the airline industry for help Thursday, naming John P. Tague, the former president of United Airlines, as its chief executive, effective Friday.
Tague was at United for eight years, rising through the ranks to become president and chief operating officer, prior to parent UAL's merger with Continental to become United Continental Holdings (UAL) . More recently, Tague was CEO of Cardinal Logistics Holdings, a transportation provider.
Must Read: 10 Stocks Carl Icahn Loves in 2014
Shares of Hertz fell slightly by 0.22% to $22.70 in after-hours trading and are off 21% for the year to date. The company has been struggling to win shareholder support and its stock has fallen approximately 28% from its 52-week high hit over the summer.
Hertz has been looking to replace its CEO since September, when Mark Frissora announced plans to step down for personal reasons. His resignation followed Hertz’s announcement in June it would restate earnings going back as far as 2011. The company also noted that the Sec urities and Exchange Commission had opened an investigation into the company’s accounting practices.
Hertz activist shareholder Carl Icahn played a role in Tague's appointment. Two of the five independent directors on the CEO search committee are Icahn appointees to the Hertz board, per the deal Icahn struck with the company in September as part of a settlement. But whether Tague's appointment will pass muster with other activist shareholders such as Jana Partners, which recently pushed for Hertz to name Scott Thompson, former Dollar Thrifty Automotive Group CEO, has yet to be seen.